Mobile apps saving money, making money

Hot for shopping

The concept of "new retail" also saw traction among app aficionados last year. Alibaba founder Jack Ma first used the term two years ago to describe "the integration of online, offline, logistics and data across a single value chain".

One example would be a service that allows customers to order fresh groceries online and have them delivered to their doorstep. The penetration rate of apps offering such a service more than doubled year-on-year in 2017, according to Cheetah Global Lab.

At the same time, the rates for online-to-offline retail apps－which draw potential customers from online channels to make purchases at brick-and-mortar outlets－and logistics apps both increased by about 60 percent.

Despite the upward trend, Huang Xinshan, executive director of the Guangdong Chain Operation Association based in Guangzhou, pointed out that most "new retail" businesses are still exploring profitable models.

"To simply digitalize deals is not enough," he said. "It's more about the optimization of business links among service providers throughout the value chain."

One type of app that appears to have already found its rhythm, however, are those that allow users to livestream or share short-form videos. Cheetah Global Lab's data show the penetration rate in this sector almost doubled compared with 2016, while the daily user rate is now higher than the major video-streaming websites.

Ma Shicong, a senior analyst for internet market consultancy Analysys, said companies with a portfolio of video apps－such as Chinese news aggregator Toutiao－are precisely targeting different audiences nationwide.

The revenue generated by apps in China surged by 270 percent year-on-year to $35 billion in 2017, the highest in the world, according to App Annie, a global market data and insights company based in the United States.

In a recent report, the company described the market in major Chinese cities as "fairly mature", as it is bringing considerable income for app developers.

Meanwhile, in smaller cities, users are still shifting to mobile devices, meaning there is much growth potential.

So what can we expect from Chinese apps in 2018?

Quan Jing, executive director of Cheetah Global Lab, said she believes that in the short term more sectors will attempt to integrate with livestreaming technologies, as has been seen recently with online quiz apps, such as Chongding Dahui.

She also predicted that competition in the transportation sector will diversify, as evidenced by Meituan-Dianping, the group-buying and food delivery company, announcing plans to launch a ride-hailing app.

"Key words for this increased competition will be 'sharing' and 'new energy'," Quan said, adding that upgrades to technology will also have a major impact.

"The competition will be carried out between internet giants and traditional industry leaders, and the theme will be about upgrading offline channels to make them smarter," she added.